On a global scale, the automotive industry is experiencing its largest growth in developing and emerging economies. However, China and the USA still remain the greatest automobile markets when it comes to both sales and production. According to Statista, the worldwide sales of passenger cars reached 78.6 million in 2017 and it is expected to grow in the future.
Quite like the cell phones have become more capable than making calls, the cars can do a lot more than just drive and park. The automotive companies are embracing the latest technology to provide the most advanced, comfortable, and safest vehicles to their customers. In short, the cars are becoming large smart devices improving the way people move around.
Increased Electric Fuel Efficiency
Tesla is at the forefront of producing fuel-efficient electric and hybrid vehicles. These vehicles are so advanced that they can cover hundreds of miles with a single charge. More than 270 ambitious startups are working to improve the electric vehicles industry. The global electric vehicle sales are expected to grow by 38% reaching 6.67 million units in 2019.
Back in 2016, more than 2 million electric vehicles were sold and this figure is going to rise this year as more automotive manufacturers are adopting this technology in their vehicle production. VW and GM have already launched electric vehicles in their fleet and Volvo claims that all of their engines will be equipped with an electric motor by the end of this year.
As technology advances, the role of Artificial Intelligence (AI) and Machine Learning (ML) is becoming more prevalent in modern cars. Our vehicles are transforming into IoT devices which can connect to our phones and take our voice commands to perform various functions. This will help in personalizing the driving experience and such vehicles are going to receive the most popularity on platforms like AutoLina.
A number of manufacturers are applying such algorithms which will help in automating the process of setting up a vehicle. Predictive technology can also help in setting up sensors in the car that will inform if it needs a check-up from the mechanic. It will also play a vital role in estimating the performance of your car after considering its condition and mileage.
Conclusion — Viewing it from an Investor’s Perspective
The ultimate truth is that these automobile companies are too big to fail and the financial consequences of such an incident will impact the economy of the entire country. Back in 2009, GM and Chrysler were given a government bailout to emerge from bankruptcy. This wasn’t the first time as the government had done it for Chrysler once before in 1979.
The driverless cars are setting the precedence for CaaS (Car-as-a-Service) where the users can summon a driverless vehicle with the help of an app. This will be the most advanced form of ride-hailing services which are very popular these days. Thus, considering the potential which this industry possesses in the future, investors are looking at some hefty profits by making investments in it.